The contribution and direct-use value of livestock to rural livelihoods in the Sand River catchment, South Africa

Abstract

The productive functions of livestock ownership in communal areas are multipurpose in character, comprising a mix of stock types and a range of goods and services used. When all these multiple uses are accounted for, the cash and direct-use returns of livestock in communal areas can be comparable to commercial systems, although temporally and spatially variable. Yet previous work has generally excluded small stock from such analyses, as well as benefits and costs to non-owning households. This paper presents empirical results of a study in the Sand River catchment, assessing the benefits and costs accruing to owners and nonowners for both cattle and goats within a livelihoods analysis framework. Results indicate that cattle are used for a greater variety of goods and services than are goats. The savings value represented the most important function, followed by milk and then manure. Even if savings value was excluded, cattle ownership made a significant contribution to local livelihoods. Goats also provided a net positive benefit, represented largely by the savings value, followed by meat and cash sales. Non-owners also benefited through donations of manure, milk, draught and meat for free, or at a cheaper rate than alternatives. The majority of non-owners aspired to livestock ownership, although the risk of theft of animals was of growing concern. Averaged across the whole catchment, the net value of goods and services from livestock was just over R400 per hectare, with an annual return to capital of 36%. Cattle contributed the bulk of the value by virtue of their greater numbers and larger size, but on a per kilogramme basis goats provided higher value. Many of the goods and services obtained from livestock were not enumerated in regional or national economic statistics.

African Journal of Range & Forage Science 2005, 22(2): 127–140